Latest data from crypto asset manager CoinShares has shown a noticeable comeback in the crypto market. In its latest ‘digital asset fund flows weekly report,’ the asset manager revealed that last week marked a significant uptick in investor confidence, as digital asset investment products saw $176 million in inflows.

According to James Butterfill, head of research at CoinShares, this surge in inflow signals a strong, “unanimous” positive sentiment across the board, with particular attention to Ethereum-based funds.

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Dissecting The Crypto Fund Flows

Delving into the report, Butterfill revealed that Ethereum products have “distinctly” stood out, attracting $155 million of the total inflows, the highest year-to-date intake since 2021.

This influx highlights the market’s renewed interest in Ethereum, especially with the recent introduction of spot Ethereum exchange-traded funds (ETFs) in the United States, according to Butterfill.

Notably, the successful live trading of these funds has not only boosted Ethereum’s position in the global crypto market but also appears to have played a pivotal role in the overall increase in its market cap and investment product offerings.

As for Bitcoin, Butterfill revealed in the report that despite seeing outflows earlier in the week, Bitcoin could still end the week with a positive total inflow of approximately $13 million.

On the other hand, Short Bitcoin ETPs, as reported, “saw their largest outflows since May 2023, totaling $16m (23% of AuM), reducing AuM for short positions to its lowest level since the start of the year, indicating a substantial investor exit.”

Furthermore, Coinshares disclosed that despite the initial volatility, the overall market sentiment has been “overwhelmingly” positive. The report highlights that the inflows weren’t just isolated incidents but part of a broader, global positive reception to digital assets.

Notably, regions such as the United States, Switzerland, Brazil, and Canada have been front runners, injecting substantial capital into the market. It is worth noting that this global participation in inflows highlights a collective bullish outlook despite previous major dips.

Market Performances: ETH And BTC

Bitcoin and Ethereum are struggling to defeat the bears, with both assets still maintaining their price mark above major key levels.

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For instance, Ethereum still trades above $2,500 at the time of writing, with a current trading price of $2,689. This price mark comes against the asset’s notable increase of more than 11% in the past week and the extended bullishness of a 1.6% surge in the past day.

Bitcoin has also seen quite a surge in the past week, increasing by 11.4%. Although the asset has witnessed a decline of 0.4% in the past day, it is still maintaining its price below $60,000.

Featured image created with DALL-E, Chart from TradingView

On Monday, investors poured millions of dollars into U.S.-listed spot Ethereum exchange-traded funds (ETFs), even as the global market crashed due to heightened expectations of further rate hikes by the Bank of Japan, recession fears, and the escalating geopolitical tensions in the Middle East. Rumors of market maker Jump Trading’s liquidating its crypto business further exacerbated Monday’s market rout. 

Only a week ago, BTC traded near $70,000 with traders elated about Trump’s likely return to the White House and hopes of making the preeminent crypto a strategic reserve asset. Since then, the Bitcoin price plunged 30% from peak to trough, marking the steepest drop during the current market cycle. Notably, Ethereum’s price fell as much as 20% on Monday, which is its biggest one-day price decline since 2021.

The turbulence caused the widely-used Crypto Fear and Greed Index to flash “fear” — its lowest zone since early July. The index measures market sentiment for Bitcoin and the broader cryptocurrency industry to indicate whether participants are in fear — usually a sign of local bottoms — or greedy, which indicates market tops.

Ether ETF Investors Buy Dip

Even as global markets suffered, spot Ether ETFs logged a daily net inflow of $48.7 million, which is the second-biggest daily inflow since the ETH-based products started trading on July 23 — suggesting significant demand for the second-largest crypto by market value. This means professional ETF investors with long-term strategies were calmly purchasing Ethereum amid a heavy volume day on Monday. 

Data compiled by SoSoValue shows that BlackRock’s ETHA led the charge with $47 million in inflows. VanEck and Fidelity’s ETH ETFs followed each drawing in $16 million in fresh capital. Funds from Franklin Templeton and Bitwise also registered net inflows.

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Grayscale’s recently converted Ethereum Trust (ETHE) was the only product to record net outflows on August 5, hemorrhaging $46.84 million, while the firm’s smaller and much cheaper Ethereum Mini Trust (ETH) attracted $7 million in inflows. Ether ETFs from Invesco and 21shares drew in $0 cash for the day. Overall, the 9 newborn spot ETH ETFs traded approximately $715.61 million.

Ethereum has clawed back some losses from Monday’s sell-off. According to CoinGecko data, the Ether price has settled at $2,530, up 10.9% over the last 24 hours, after having seen a low of $2,197.15 yesterday.

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